BitcoinWithTariff

$BTC Bitcoiners get everything right before everyone else, according to Pompliano Contributor.com
There is no longer trust in American economic numbers; they waver. In the shadows of institutional speeches, another voice is heard, it is biting, more direct: the Bitcoiners. Leading the charge is Anthony Pompliano, a key figure in the crypto sphere, who denounces the growing disconnection between official data and the raw, naked reality.
Many failures of official statistics
The criticisms are not new. Pompliano insists: "Bitcoiners were the first to see that the economic data was wrong." He criticizes the underestimated inflation, the downward revised employment numbers, and a GDP growth that he considers largely overestimated. He bases this on the very confession of the American Treasury Secretary, Scott Bessent:

#BitcoinWithTariff

The intersection of Bitcoin and tariffs is a multifaceted issue with potential direct and indirect impacts. Here's a breakdown of the key considerations:
Direct Impact:
* No Direct Tariffs on Bitcoin: Currently, tariffs are taxes imposed on imported or exported goods and services. Bitcoin, being a digital, decentralized cryptocurrency, does not fall under this category as it is not a physical commodity being traded across borders in the traditional sense.
* Potential Tariffs on Mining Hardware: A more direct link could arise from tariffs imposed on the importation of Bitcoin mining hardware. If countries impose tariffs on the specialized computers (ASICs) used for mining, this could increase the cost of mining operations within those jurisdictions.
* For example, if the United States were to impose a tariff on ASIC miners imported from China (a major producer), US-based mining companies would face higher capital expenditures.
* This increased cost could potentially lead to a slowdown in new Bitcoin production within that country and might even influence the geographical distribution of mining power. However, it's unlikely to directly impact the price of Bitcoin itself, although some argue that a reduced supply of new coins could theoretically exert upward pressure over the long term.
Indirect Impact:
The primary ways tariffs can affect Bitcoin are indirect, stemming from their broader economic consequences:
* Increased Economic Uncertainty and Inflation: Tariffs can lead to trade disputes, higher prices for consumers due to increased import costs, and overall economic uncertainty. In such environments, investors might look for alternative assets to hedge against inflation and the devaluation of fiat currencies.
* Bitcoin as a Hedge: Some argue that Bitcoin, with its limited supply and decentralized nature, could be seen as a hedge against such economic instability, similar to gold. If tariffs lead to significant inflation or erode trust in traditional financial systems, demand for Bitcoin as a store of value might increase.
* However, Bitcoin's correlation with traditional risk assets like equities has also been observed. In times of acute economic crisis, investors might sell off riskier assets, including Bitcoin, to secure liquidity. Therefore, its role as a consistent safe-haven asset is still debated.
* Impact on National Currencies: Tariffs can weaken national currencies due to trade imbalances or retaliatory measures. If a major currency weakens significantly, it could lead to increased interest in Bitcoin as an alternative medium of exchange or store of value in affected regions.
* Regulatory Responses: Trade tensions and the economic consequences of tariffs might prompt governments to introduce stricter regulations on cryptocurrencies as part of broader economic control measures or in response to capital flight. This increased regulatory scrutiny could impact the price and adoption of Bitcoin.
* Borderless Nature of Bitcoin: Bitcoin's fundamental characteristic as a borderless and non-physical asset means it exists outside the purview of traditional international trade frameworks and cannot be directly targeted by tariffs on goods. This could be seen as an advantage during periods of trade disputes, potentially increasing its appeal as a tool for cross-border transactions that bypass traditional financial channels affected by tariffs.
Expert Opinions and Market Reactions:
* Some analysts believe that in the long term, Bitcoin's role as a hedge against tariffs and economic instability could strengthen.
* Conversely, in the short term, tariffs might lead to slower economic growth and increased volatility in Bitcoin and other risk assets.
* Market reactions to tariff announcements have shown that Bitcoin can be sensitive to macroeconomic uncertainty, sometimes experiencing price drops following major trade policy announcements.
In Conclusion:
While Bitcoin itself is not subject to tariffs in the traditional sense, the economic fallout from tariffs and international trade disputes can significantly influence its price and adoption. Increased economic uncertainty and inflation could bolster Bitcoin's narrative as a hedge, while regulatory responses to trade tensions could have the opposite effect. The interplay of these factors makes the relationship between Bitcoin and tariffs a complex and evolving dynamic to observe.